Is there a certain type of franchisee who is better suited to joining a newer system?
People who are real entrepreneurs, real risk takers. Or it may not be the only franchise operation they’re involved with–they’re diversified, they understand how the game is played and can afford some risk. But for a first time out of the box, I wouldn’t recommend it. I wouldn’t learn how a franchise system works on a risky venture. Are there risks involved with buying into established systems, too? No question. You have to look at their history as far as terminations. Every franchise organization is required by law to report how many businesses have left the franchise system, so you can get a feel for the flow of in and out. Look at the litigation section of their offering circular, see what types of litigation are against the company. Also, I would contact some of the existing franchisees involved in that type of business. Ask them the hard questions, because a lot of the sales material franchisors give out may paint a rosy picture, and it may be a very good opportunity, but you sti
